This time, Binance became the target of law enforcement agencies due to violations of US anti-money laundering laws in its early development. In the eyes of the public, what they may see is just the surface of “another large exchange violating the law”. But in fact, within less than 24 hours since the incident, the entire cryptocurrency circle, including many heavyweight insiders, have expressed the positive significance of this landmark event for the long-term development of Binance. The final outcome of this criminal case may be the best result for Binance and the entire industry.
Binance is worthy of its users
Choosing the overall situation and customer interests as a priority
Solid business foundation and financial stability
Outlook for the future
First of all, from the perspective of the US regulatory agencies and Binance’s official statement, agencies such as the DOJ and FINCEN did not accuse Binance of “embezzling customer assets” or “market manipulation” in the criminal investigation. Instead, they focused on Binance’s shortcomings in anti-money laundering, and the investigation results seem to indicate to the public that “under the strict investigation of regulatory agencies, no wrongdoing towards users was found by Binance.” This not only eliminates the uncertainty that has long plagued Binance but also, from a different perspective, it seems that no exchange in the entire industry can produce a more credible proof than this investigation report, which also confirms Binance’s longstanding core value of “protecting users.”
Furthermore, this entire incident also cannot avoid mentioning the decisiveness of Binance founder Changpeng Zhao. Before the outcome was confirmed, no one seemed to expect such a result. Even Colin Wu, a representative figure in the cryptocurrency circle and editor-in-chief of the self-media “Wu Talk Blockchain,” believed that Zhao Changpeng would not easily step down.
However, as everyone now knows, Zhao Changpeng chose to step down and plead guilty, handing over the company to a successor in exchange for the smooth operation of the company. For a founder to be able to let go of a business he built from scratch, to retire when the company is still expanding and developing, is undoubtedly not an easy decision for anyone. This is not only a rational judgment by a businessman who prioritizes the overall situation but also a selfless decision to sacrifice oneself to protect the interests of customers.
Undoubtedly, Binance is one of the most representative companies of this era, and Changpeng Zhao is one of the most influential figures in the cryptocurrency circle. “Action speaks louder than words” may be the most suitable description at this moment to explain why he was able to make such a difficult decision. He places users before the development of the company and far above his personal interests.
In fact, after experiencing a series of negative events in 2022 and 2023, the virtual asset industry has been full of twists and turns, especially when facing a more stringent regulatory environment. As a leading industry player, Binance naturally cannot avoid becoming a key target of regulatory agencies. FUD surrounding Binance is endless. Now, this settlement agreement undoubtedly brings a ray of sunshine to Binance, freeing itself from the uncertainty of criminal litigation, allowing Binance to finally move forward without historical burdens.
Another focus is on this “sky-high” settlement agreement and whether it will impact Binance’s operations. After the incident, there have been doubts about how much the $4.3 billion settlement amount will affect Binance. After all, if this amount were placed on other virtual asset service providers, they might have to seek financing from outside to raise the money. However, in a previous report by Zombit, two different analyses were quoted, both proving that Binance is fully capable, even without liquidating cryptocurrency assets, to pay this astronomical settlement amount.
Many people may say, “Binance can make billions of dollars in a year, so there is no need to worry.” But honestly, think about it, which institution or service provider that went bankrupt last year did not give the impression of “being good at making money”? Therefore, business profitability is secondary, but having a solid business foundation, long-term business planning, appropriate investments, and expenditures are the main reasons why Binance has been able to maintain its leading position in the industry. This allows them to continue operating normally even in the face of such a huge fine.
Regarding external concerns, Binance’s newly appointed CEO Richard Teng also posted on social media:
Binance’s newly appointed CEO Richard Teng has officially taken over the position of Binance CEO. Richard himself has a rich background in financial regulation and government relations, forming a sharp contrast with CZ’s background. It is conceivable that Binance will transform from a start-up that once pioneered in turbulent times into a more stable and mature financial institution, focusing more on compliance, transparency, and security to gain more trust. This arrangement seems to indicate that “compliance” is an unavoidable issue for all virtual asset industry players and is the only direction for future industry development. Is today’s event a challenge or crisis for Binance? Or is it more in line with what Zhao Changpeng said in an internal message within Binance: